Ski resort operator Vail Resorts, Inc. ( MTN ) on Tuesday posted worse-than-expected fiscal second quarter earnings results, sending its shares lower in premarket trading.
The Broomfield, CO-based company reported fiscal second quarter net income of $46.4 million, or $1.27 per share, compared with last year's $54.6 million, or $1.48 per share.
Revenue fell 5.5% from last year to $373.3 million.
On average, Wall Street analysts expected a higher profit of $1.44 per share, on larger revenue of $380 million.
On a positive note, MTN's board of directors approved a 25% hike in its quarterly dividend payout. The new dividend of 18.75 cents per share (up from 15 cents) will be payable on April 10 to shareholders of record as of March 26.
Vail Resorts shares fell $1.49, or -3.6%, in premarket trading Tuesday.
The Bottom Line
Shares of Vail Resorts, Inc. ( MTN ) will now have a 1.81% dividend yield, based on the higher dividend payout and last night's closing stock price of 41.48. The stock has technical support in the $38-$40 price area. If the shares can firm up, we see overhead resistance around the $44-$46 price levels.
Vail Resorts, Inc. ( MTN ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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